Google loses status as premium-priced Web stock

SAN FRANCISCO/NEW YORK: Memo to Google: Welcome to life as an everyday Internet stock.Shares of Google Inc. fell nearly 5 percent on Monday and have lost a quarter of their value this month as the Web search company that once could do no wrong faces up to the realities of a business that must face the bad with the good.

But despite several bouts of negative news that have knocked a stock once thought headed to $500 back below $350, the vast majority of Wall Street analysts remain sanguine over Google’s prospects and advise investors to buy the stock.

The latest drop follows a report in Barron’s, the financial weekly, that speculated the Web search company’s stock could drop 50 percent under a scenario in which it would fall well short of bullish analysts’ 2006 revenue estimates.

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Varun Krish

Varun Krish has been dabbling with computers and websites for almost 2 decades. He has traveled to over 24 countries and hopes to visit every country on earth one day. He is currently the Editor-in-Chief of FoneArena.com You can follow him on @varunkrish

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